The cryptocurrency exchange Coinbase announce that it would be cutting 14% of its workforce as a result of changes in the nature of work brought about by artificial intelligence (AI), in order to become lean, agile, and AI-native.

The firm stated that “an invitation to meet with an HRBP and a senior leader in your organization” will be included in an email to the personal accounts of all affected team members with further details.

“The Coinbase system access has been eliminated today. Although it may seem abrupt and severe, it is the only responsible course of action considering our responsibility to safeguard customer data,” said Coinbase CEO Brian Armstrong in an X post.

“Today I’ve made the tough choice to cut the size of Coinbase by 14 percent. Two forces are converging at the same moment. We must be front footed in order to react to both, he said.

The market is the first thing to consider. According to the CEO, Coinbase is well-capitalized, has a diverse range of income sources, and is in a good position to withstand any challenge.

“But our industry is still unpredictable quarter to quarter. We’ve gotten through that cyclicality numerous times in the past and come out on the other side stronger, but right now we’re in a down market and need to make changes to our cost structure so that we can be leaner, faster, and more productive when we enter our next phase of growth,” Armstrong said.

Secondly, AI is transforming the way we work.

“I’ve seen engineers employ AI to ship in days what used to take a team weeks to accomplish in the last year. Many of our processes are now being automated, and non-technical teams are releasing production code. He said that the speed of what is possible with a small, focused team has significantly altered and is increasing every day.

Moreover, he said that the firm is making early and intentional steps to redesign Coinbase to be lean, quick, and AI-native.

The CEO continued, “We must go back to the speed and focus of our startup’s founding, with AI at our core. ”

US employees will be entitled to at least 16 weeks of base compensation (plus 2 weeks for each year of employment), their next equity vest, and six months of COBRA benefits.

Those with a work visa will get additional help with their transition. Similar support will be provided to those outside the United States, taking into account local circumstances and any consultation requirements.